Reg BI Lands in Top 15 of Customer Disputes in FINRA Arbitration

Posted on July 22nd, 2022 at 12:52 PM

From the Desk of Jim Eccleston at Eccleston Law:

After taking effect nearly two years ago, Regulation Best Interest (Reg BI) has entered the top 15 of FINRA arbitration claims. 

Reg BI now ranks 14th on the list of top dispute types for client arbitration, according to FINRA Dispute Resolution. Reg BI, a rule that imposes a new broker-dealer standard of conduct, was approved by the SEC in June 2019 and was subsequently implemented in June 2020. FINRA regulators primarily are responsible for conducting examinations and monitoring whether financial services firms are complying with the rule. 

Since Reg BI in some respects has replaced the previous suitability rule, the regulation has introduced a new cause of action in FINRA arbitration claims. While there were 330 suitability disputes in FINRA arbitration this year through May, industry experts anticipate that the number of Reg BI claims eventually will catch up. The top dispute in FINRA arbitration is breach of fiduciary duty, which has been alleged in 485 cases this year. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory, arbitration and disciplinary matters.

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

February 14, 2025
Jefferies Financial Group Dismisses Miami Advisory Team Amid Alleged Misconduct

Jefferies Financial Group recently terminated a team of Miami-based wealth advisors following allegations of improper money transfers and the use of unauthorized communication methods to conceal the activity.

February 13, 2025
FINRA Panel Denies J.P. Morgan's $39.7 Million Claim Against Former Advisor

A FINRA arbitration panel recently rejected J.P. Morgan Securities’ bid to recover $39.7 million in damages from Edward Turley, a former financial advisor whose alleged
misconduct led the firm to incur significant settlement costs.

February 12, 2025
Edward Jones Advisor Barred by FINRA Over Allegations of Unauthorized Account Changes

FINRA has barred Gwendolyn J. Hayes, a former Edward Jones advisor in Oregon after allegations surfaced that she altered client account information without authorization.